Cardinal Health Inc
Exchange: NYSESector: HealthcareIndustry: Medical Distribution
Cardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. Our company's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives every day.
Current Price
$195.20
+0.42%GoodMoat Value
$120.88
38.1% overvaluedProfile
Valuation (TTM)
Market Cap$45.93B
P/E29.54
EV$55.29B
P/B—
Shares Out235.32M
P/Sales0.18
Revenue$250.74B
EV/EBITDA15.53
Cardinal Health Inc (CAH) Stock Analysis
GoodMoat Analysis
Cardinal Health appears to lack a durable competitive moat and operates with extremely thin profitability, failing the initial quality gate for a value investor. Its current price of $211.31 is significantly above the GoodMoat Target of $129.42, suggesting an unfavourable valuation.
Read full analysis
Cardinal Health is a major player in the medical distribution industry, acting as a middleman between manufacturers and healthcare providers. Applying the GoodMoat Investment Framework, the company's competitive advantages are weak. It would likely score low on the 14-point Moat Identification checklist, as its business model is characterized by low margins and high operational scale rather than durable advantages like network effects, switching costs, or proprietary technology. This low moat score would trigger a 'Do not proceed' in Step 1 of the Decision Framework. The financial data supports this: with a profit margin of 0.7% and an operating margin of 1.0%, the company exhibits none of the high-return characteristics of a quality business. While revenue growth is strong at 18.8% YoY, it is not translating into meaningful bottom-line profitability or high free cash flow generation, as evidenced by the 3.7% FCF yield. The valuation is a primary concern. Trading at a P/E of 30.2x and a price of $211.31, it sits far above the GoodMoat Target of $129.42. This implies a deeply unfavourable margin of safety, placing it well outside the 'Favourable' or even 'Marginal' bands in the Valuation Assessment. For a value investor, the combination of a weak moat, poor quality indicators, and a high price relative to estimated fair value makes this an unfavourable candidate for further investigation under this framework. Analysis based on data as of 2024-05-15.
Market Cap$45.93B
Current Price$195.20
P/E Ratio29.54
Forward P/E—
PEG Ratio-1.48
EPS$6.45
Book Value$-11.82
P/B Ratio—
CAH Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -4.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 4.7B
Revenue
145.5B
FY19
152.9B
FY20
162.5B
FY21
181.3B
FY22
205.0B
FY23
226.8B
FY24
222.6B
FY25
Net Income
1.4B
FY19
—
FY20
611M
FY21
—
FY22
330M
FY23
852M
FY24
1.6B
FY25
CAH 52-Week Range
$144.86
$229.33
50-Day MA: $206.05200-Day MA: $190.16
Did you know?
Earnings per share grew at a 2.3% CAGR.
Cardinal Health Inc (CAH) Financial Summary
Cardinal Health Inc (CAH) is a Healthcare company in the Medical Distribution industry, listed on NYSE. The stock currently trades at $195.20 with a market capitalization of $45.93B.
Key valuation metrics include a P/E ratio of 29.54, and EPS of $6.45. The company reports a profit margin of 0.6%.
CAH Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $45.93B |
| P/E Ratio | 29.54 |
| EPS | $6.45 |
| P/S Ratio | 0.18 |
| EV/EBITDA | 15.53 |
| Dividend Yield | 1.08% |
| Profit Margin | 0.6% |
CAH Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $145.53B | $1.36B |
| FY20 | $152.92B | $-3.70B |
| FY21 | $162.47B | $611.00M |
| FY22 | $181.33B | $-938.00M |
| FY23 | $204.98B | $330.00M |
| FY24 | $226.83B | $852.00M |
| FY25 | $222.58B | $1.56B |
Cardinal Health Inc (CAH) Valuation
Based on GoodMoat's DCF model, Cardinal Health Inc has a fair value estimate of $120.88. At the current price of $195.20, the stock appears 61.5% overvalued relative to our intrinsic value estimate.
CAH Quality Indicators
Cardinal Health Inc maintains a profit margin of 0.6% and an operating margin of 1.0%. The current ratio is 0.94.
About Cardinal Health Inc
Cardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. Our company's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives every day.
CAH Free Cash Flow
Cardinal Health Inc generated $1.85B in trailing twelve-month free cash flow, representing an FCF yield of 4.03%. This moderate FCF yield indicates reasonable cash generation.
CAH Shares Outstanding
Cardinal Health Inc has 0.24 billion shares outstanding at a share price of $195.20, giving it a market capitalization of $45.93B.
CAH Recent Insider Trades
Recent insider transactions at Cardinal Health Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Greene Michelle D. (Chief Information Officer) | SELL | 100 | $22855.00 |
| Alt Aaron E (Chief Financial Officer) | SELL | 2,328 | $524964.00 |
| Hall Patricia Hemingway | SELL | 4,000 | $918880.00 |